Sainik Finance & Industries reported a net profit of ₹92.21 lakh for the quarter ended June 30, 2026, marking a decline of 2.47% from ₹94.56 lakh in Q1FY25. The bottom-line contraction occurred despite a robust 22.08% expansion in revenue from operations to ₹441.93 lakh, driven primarily by higher interest income. Concurrently, the company’s Board of Directors underwent significant changes on August 12, 2026, accepting the resignation of Non-Executive Director Kuldeep Singh Solanki and appointing Somvir Sindhu as an Additional Director.

The financial results were reviewed by statutory auditors M/s. Kumra Bhatia & Co. and approved by the Board on August 12, 2026. Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Sainik Finance & Industries Limited notified BSE Limited regarding these governance shifts. Solanki’s resignation letter, dated August 4, 2026, cited other preoccupations as the sole reason for his departure, confirming no material disagreements. Consequently, he ceased to be a member of the Stakeholders Relationship Committee and the Corporate Social Responsibility Committee.

Financial Performance Highlights

Total income rose to ₹442.02 lakh from ₹361.99 lakh in Q1FY25. This growth was partially offset by rising finance costs, which increased to ₹270.52 lakh from ₹227.81 lakh in the corresponding period last year. Employee benefits expense also saw a slight increase to ₹25.32 lakh from ₹22.79 lakh. Other income remained negligible at ₹0.09 lakh.

Profit before tax improved significantly by 33.63% to ₹123.23 lakh, aided by deferred tax benefits of ₹1.49 lakh. However, current tax expenses remained substantial at ₹32.51 lakh. Earnings per share (basic and diluted) stood at ₹0.85, down from ₹0.87 in Q1FY25.

Governance Changes

Somvir Sindhu was appointed as a Non-Executive Additional Director effective August 12, 2026. His appointment is subject to regularization by shareholders at the ensuing 34th Annual General Meeting (AGM). Sindhu holds a graduation degree and has over 10 years of experience in coal mining, mining logistics, coal beneficiation, power generation, and real estate through his family business interests. He is not related to any existing director of the company. The Board reconstituted the Stakeholders Relationship Committee and Corporate Social Responsibility Committee to reflect these changes. The company’s paid-up equity share capital remains unchanged at ₹1,088.00 lakh.

What the Numbers Show

The divergence between strong top-line growth of 22.08% and marginal net profit decline highlights margin pressure from rising finance costs. While interest income grew robustly, finance costs increased by nearly 18.7%, suggesting that the cost of funds or borrowing volume may have risen disproportionately to lending assets. Impairment charges decreased to ₹5.93 lakh from ₹9.30 lakh, indicating slight improvement in asset quality, though this remains a key risk factor.

Sainik Finance & Industries has appointed M/s Divyank Khullar & Associates as its internal auditors for the financial year 2026-27. The Board of Directors approved the engagement on August 12, 2026, ensuring compliance with regulatory requirements for independent oversight of the company’s financial controls and processes.

The appointment was made pursuant to Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company also cited compliance with SEBI Circular No. SEBI/HO/CFD/CFDPoD1/P/CIR/2023/123 dated July 13, 2023. Piyush Garg, Company Secretary & Compliance Officer, signed the intimation submitted to BSE Limited.

Auditor Profile

M/s Divyank Khullar & Associates is a Chartered Accountants firm based in New Delhi, established in 2012. The partnership firm holds Firm Registration Number (FRN) 025755N and is led by two partners: Mr. Divyank Khullar (FCA) and Mr. Shikar Singh (ACA). The firm provides assurance, accounting, tax, financial consultancy, and special business advisory services.

Mr. Divyank Khullar, a Fellow Member of the Institute of Chartered Accountants of India (Membership No. 528399), leads the firm. He specializes in internal audits, statutory audits, taxation, project appraisals, and outsourced operations. The firm reports maintaining satisfactory client relationships over its 14-year operational history.

Independence Confirmation

The filing explicitly confirms that there is no relationship between the appointed partnership firm and any of the Directors of Sainik Finance & Industries Limited. This declaration satisfies the independence criteria mandated under SEBI listing regulations for internal auditor appointments.

The firm’s registered address for correspondence is listed as AC-7, First Floor, Ganga Ram Vatika, Tilak Nagar, New Delhi, while its credential address is noted as K-6, Plot No.13, Shyam Nagar, Khyala Road, New Delhi. The company’s corporate office remains located at Ambience Mall, Gurugram.